Dessert Bakery Business Plan

Jolly's Java and Bakery
January, 2001
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Table Of Contents
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Keys To Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 Company ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Company History . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3.0 Product/Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4.0 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . .4
4.1.1 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . .5
4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . .5
4.2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . .6
4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . .6
4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . .6
5.0 Strategy and Implementation . . . . . . . . . . . . . . . . . . . . . . . . . 7

5.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.2 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
6.0 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

6.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

7.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 10
7.2 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . 11
7.3 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . 12
7.4 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
7.5 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.0 Executive Summary
Jolly's Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in
southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its
broad variety of coffee and pastry products. JJB will be operating in a town with very little coffee
shop competition.
Highlights
$700,000
$600,000
$500,000
$400,000 Sales
Gross
$300,000
Net
$200,000
$100,000
$0
2001 2002 2003
1.1 Mission
JJB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet
the demand of the middle- to higher-income local market area residents and tourists.
1.2 Keys To Success
Keys to success for JJB will include:
1. Providing the highest quality product with personal customer service.

2. Competitive pricing.
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2.0 Company Summary
JJB is a bakery and coffee shop managed by two partners. These partners represent
sales/management and finance/administration areas, respectively. The partners will provide
funding from their own savings, which will cover start-up expenses and provide a financial cushion
for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover
the rest of the required financing. The company plans to build a strong market position in the
town, due to the partners' industry experience and mild competitive climate in the area.
2.1 Company ownership
JJB is incorporated in the state of Washington. It is equally owned by its two partners.
2.2 Company History
JJB is a start-up company. Financing will come from the partners' capital and a ten-year SBA loan.
The following chart and table illustrate the company's projected initial start-up costs.
Start-up
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses Assets Investment Loans
Table 2.2: Start-up
Start-up Plan
Start-up Expenses
Legal $3,000
Premise renovation $20,000
Expensed equipment $40,000
Other $1,000
Total Start-up Expense $64,000
Start-up Assets Needed

Cash Requirements $70,000
Other Short-term Assets $12,000
Total Short-term Assets $82,000
Long-term Assets $65,000

Total Assets $147,000
Total Start-up Requirements: $211,000

Left to finance: $0
Start-up Funding Plan
Investment
Patterson $55,000
Fields $55,000
Other $0
Total investment $110,000
Short-term Liabilities
Unpaid Expenses $1,000
Short-term Loans $0
Interest-free Short-term Loans $0
Subtotal Short-term Liabilities $1,000
Long-term Liabilities $100,000
Total Liabilities $101,000
Loss at Start-up ($64,000)

Total Capital $46,000
Total Capital and Liabilities $147,000
Checkline $0
3.0 Product/Service Description
JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown
imported coffee beans. JJB caters to all of its customers by providing each customer coffee and
espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business
operations. Six to eight moderate batches of bakery and pastry products are prepared during the
day to assure fresh baked goods are always available.
4.0 Market Analysis
JJB's focus is on meeting the demand of a regular local resident customer base, as well as a
significant level of tourist traffic from nearby highways.
4.1 Market Segmentation
JJB focuses on the middle- and upper-income markets. These market segments consume the
majority of coffee and espresso products.
Local Residents
JJB wants to establish a large regular customer base. This will establish a healthy, consistent
revenue base to ensure stability of the business.
Tourists
Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.
4.1.1 Market Analysis
The chart and table below outline the total market potential of the above described customer
segments.
Market Analysis (Pie)
Local Residents
Tourists
Other
Table 4.1.1: Market Analysis
Market Analysis
Potential Customers Growth 2001 2002 2003 2004 2005 CAGR
Local Residents 20% 200,000 240,000 288,000 345,600 414,720 20.00%
Tourists 15% 150,000 172,500 198,375 228,131 262,351 15.00%
Other 0% 0 0 0 0 0 0.00%
Total 17.93% 350,000 412,500 486,375 573,731 677,071 17.93%
4.2 Target Market Segment Strategy
The dominant target market for JJB is a regular stream of local residents. Personal and expedient
customer service at a competitive price is key to maintaining the local market share of this target
market.
4.2.1 Market Needs
Because Washington has a cool climate for eight months out of the year, hot coffee products are
very much in demand. During the remaining warmer four months of the year, iced coffee products
are in significantly high demand, along with a slower but consistent demand for hot coffee
products. Much of the day's activity occurs in the morning hours before ten a.m., with a relatively
steady flow for the remainder of the day.
4.3 Service Business Analysis
The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine
climate in southwest Washington stimulates consumption of hot beverages throughout the year.
Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the
numerous coffee bars across the region. Despite low competition in the immediate area, JJB will
position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in
a relaxing environment.
4.3.1 Competition and Buying Patterns
Competition in the local area is somewhat sparse and does not provide nearly the level of product
quality and customer service as JJB. Local customers are looking for a high quality product in a
relaxing atmosphere. They desire a unique, classy experience.
Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-
style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-
related accessories and equipment, and a line of premium teas, sell these items primarily through
company-operated retail stores. In addition to sales through company-operated retail stores,
leading competitors sell coffee and tea products through other channels of distribution (specialty
operations).
Larger chains vary their product mix depending upon the size of each store and its location. Larger
stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as
well as an assortment of coffee- and espresso-making equipment and accessories such as coffee
grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and
mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited
selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs.
During fiscal year 2000, industry retail sales mix by product type was approximately 73%
beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making
equipment and accessories.
Technologically savvy competitors make fresh coffee and coffee-related products conveniently
available via mail order and online. Additionally, mail order catalogs offering coffees, certain food
items, and select coffee-making equipment and accessories, have been made available by a few
larger competitors. Websites offering online stores that allow customers to browse for and
purchase coffee, gifts, and other items via the Internet have become more commonplace as well.
5.0 Strategy and Implementation
JJB will succeed by offering consumers high quality coffee, espresso, and bakery products with
personal service at a competitive price.
5.1 Competitive Edge
JJB's competitive edge is the relatively low level of competition in the local area in this particular
niche.
5.2 Marketing Strategy
As the chart and table show, JJB anticipates sales of about $491,000 in the first year, $567,000 in
the second year, and $655,000 in the third year of the plan.
Sales by Year
$700,000
$600,000
$500,000
$400,000 Espresso Drinks

Pastry Items
$300,000
Other
$200,000
$100,000
$0
2001 2002 2003
Table 5.2: Sales Forecast
Sales Forecast
Unit Sales 2001 2002 2003
Espresso Drinks 135,000 148,500 163,350
Pastry Items 86,000 94,600 104,060
Other 0 0 0
Total Unit Sales 221,000 243,100 267,410
Unit Prices 2001 2002 2003

Espresso Drinks $3.00 $3.15 $3.31
Pastry Items $1.00 $1.05 $1.10
Other $0.00 $0.00 $0.00
Sales
Espresso Drinks $405,000 $467,775 $540,280
Pastry Items $86,000 $99,330 $114,726
Other $0 $0 $0
Total Sales $491,000 $567,105 $655,006
Direct Unit Costs 2001 2002 2003

Espresso Drinks $0.25 $0.26 $0.28
Pastry Items $0.50 $0.53 $0.55
Other $0.00 $0.00 $0.00
Direct Cost of Sales 2001 2002 2003

Espresso Drinks $33,750 $38,981 $45,023
Pastry Items $43,000 $49,665 $57,363
Other $0 $0 $0
Subtotal Direct Cost of Sales $76,750 $88,646 $102,386
6.0 Management Team
Austin Patterson has extensive experience in sales, marketing, and management, and was vice
president of marketing with both Jansonne & Jansonne and Burper Foods. David Fields brings
experience in the area of finance and administration, including a stint as chief financial officer with
both Flaxfield Roasters and the national coffee store chain, BuzzCups.
6.1 Personnel Plan
As the personnel plan shows, JJB expects to make significant investments in sales, sales support,
and product development personnel.
Table 6.1: Personnel
Personnel Plan
Personnel 2001 2002 2003
Managers $100,000 $105,000 $110,250
Baristas $120,000 $126,000 $132,300
Other $0 $0 $0
Total Payroll $220,000 $231,000 $242,550
Total Headcount 8 8 8
Payroll Burden $33,000 $34,650 $36,383
Total Payroll Expenditures $253,000 $265,650 $278,933
7.0 Financial Plan
JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA
as a ten-year loan. This provides the bulk of the current financing required.
7.1 Break-even Analysis
JJB's Break-even Analysis is based on the average of the first-year figures for total sales by units,
and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed
costs. These conservative assumptions make for a more accurate estimate of real risk. JJB should
break even by the third month of its operation as it steadily increases its sales.
Break-even Analysis
$40,000
$30,000
$20,000
$10,000
$0
($10,000)
($20,000)
($30,000)
0 6000 12000 18000 24000 30000
Monthly break-even point
Break-even point = where line intersects with 0
Table 7.1: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even 15,369
Monthly Sales Break-even $33,812
Assumptions:
Average Per-Unit Revenue $2.20
Average Per-Unit Variable Cost $0.35
Estimated Monthly Fixed Cost $28,433
7.2 Projected Profit and Loss
As the Profit and Loss table shows, JJB expects to continue its steady growth in profitability over
the next three years of operations.
Table 7.2: Profit and Loss
Profit and Loss (Income Statement)

2001 2002 2003
Sales $491,000 $567,105 $655,006
Direct Cost of Sales $76,750 $88,646 $102,386
Other $0 $0 $0
------------ ------------ ------------
Total Cost of Sales $76,750 $88,646 $102,386
Gross Margin $414,250 $478,459 $552,620
Gross Margin % 84.37% 84.37% 84.37%
Operating expenses:
Advertising/Promotion $2,400 $10,000 $45,000
Rent $24,000 $25,200 $26,460
Payroll Expense $220,000 $231,000 $242,550
Payroll Burden $33,000 $34,650 $36,383
Depreciation $60,000 $69,000 $79,350
Utilities $1,200 $1,260 $1,323
Other $600 $0 $0
------------ ------------ ------------
Total Operating Expenses $341,200 $371,110 $431,066
Profit Before Interest and Taxes $73,050 $107,349 $121,554
Interest Expense Short-term $0 $0 $0
Interest Expense Long-term $9,673 $8,887 $7,637
Taxes Incurred $15,844 $24,616 $28,479
Extraordinary Items $0 $0 $0
Net Profit $47,533 $73,847 $85,438
Net Profit/Sales 9.68% 13.02% 13.04%
7.3 Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet JJB's
needs as the business generates cash flow sufficient to support operations.
Cash
$200,000
$150,000
$100,000
Cash Flow
$50,000 Cash Balance
$0
($50,000)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Table 7.3: Cash Flow
Pro-Forma Cash Flow

2001 2002 2003
Net Profit $47,533 $73,847 $85,438
Plus:
Depreciation $60,000 $69,000 $79,350
Change in Accounts Payable $10,131 $1,904 $4,276
Current Borrowing (repayment) $0 $0 $0
Increase (decrease) Other Liabilities $0 $0 $0
Long-term Borrowing (repayment) ($6,134) ($10,000) ($15,000)
Capital Input $0 $0 $0
Subtotal $111,529 $134,751 $154,064
Less: 2001 2002 2003
Change in Other Short-term Assets $0 $0 $0
Capital Expenditure $0 $20,000 $20,000
Dividends $0 $0 $0
Subtotal $0 $20,000 $20,000
Net Cash Flow $111,529 $114,751 $134,064
Cash Balance $181,529 $296,280 $430,344
7.4 Balance Sheet
The following is a projected Balance Sheet for JJB.
Table 7.4: Balance Sheet
Pro-forma Balance Sheet
Assets
Short-term Assets 2001 2002 2003
Cash $181,529 $296,280 $430,344
Other Short-term Assets $12,000 $12,000 $12,000
Total Short-term Assets $193,529 $308,280 $442,344
Long-term Assets
Capital Assets $65,000 $85,000 $105,000
Accumulated Depreciation $60,000 $129,000 $208,350
Total Long-term Assets $5,000 ($44,000) ($103,350)
Total Assets $198,529 $264,280 $338,994
Liabilities and Capital

2001 2002 2003
Accounts Payable $11,131 $13,035 $17,311
Short-term Notes $0 $0 $0
Other Short-term Liabilities $0 $0 $0
Subtotal Short-term Liabilities $11,131 $13,035 $17,311
Long-term Liabilities $93,866 $83,866 $68,866

Total Liabilities $104,996 $96,901 $86,177
Paid in Capital $110,000 $110,000 $110,000

Retained Earnings ($64,000) ($16,467) $57,380
Earnings $47,533 $73,847 $85,438
Total Capital $93,533 $167,380 $252,818
Total Liabilities and Capital $198,529 $264,280 $338,994
Net Worth $93,533 $167,380 $252,818
7.5 Business Ratios
The following table represents key ratios for the retail bakery and coffee shop industry. These
ratios are determined by the Standard Industry Classification (SIC) Index.
Table 7.5: Ratios
Ratio Analysis
2001 2002 2003 Industry Profile
Sales Growth 0.00% 115.50% 115.50% 7.60%
Percent of Total Assets 2001 2002 2003 Industry Profile

Accounts Receivable 0.00% 0.00% 0.00% 4.50%
Inventory 0.00% 0.00% 0.00% 3.60%
Other Short-term Assets 6.04% 4.54% 3.54% 35.60%
Total Short-term Assets 97.48% 116.65% 130.49% 43.70%
Long-term Assets 2.52% -16.65% -30.49% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Other Short-term Liabilities 0.00% 0.00% 0.00% 32.70%

Subtotal Short-term Liabilities 5.61% 4.93% 5.11% 23.10%
Long-term Liabilities 47.28% 31.73% 20.31% 28.50%
Total Liabilities 52.89% 36.67% 25.42% 61.20%
Net Worth 47.11% 63.33% 74.58% 38.80%
Percent of Sales 2001 2002 2003 Industry Profile

Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.37% 84.37% 84.37% 60.50%
Selling, General & Administrative Expenses 74.69% 71.35% 71.32% 39.80%
Advertising Expenses 0.49% 1.76% 6.87% 3.20%
Profit Before Interest and Taxes 14.88% 18.93% 18.56% 0.70%
Ratios 2001 2002 2003 Industry Profile

Current 17.39 23.65 25.55 0.98
Quick 17.39 23.65 25.55 0.65
Total Debt to Total Assets 52.89% 36.67% 25.42% 61.20%
Pre-Tax Return on Net Worth 88.44% 69.44% 51.10% 1.70%
Pre-Tax Return on Assets 41.67% 43.98% 38.11% 4.30%
Appendix: Jolly's Java and Bakery
Table 5.2 Sales Forecast
Sales Forecast
Unit Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Espresso Drinks 5,000 7,500 10,000 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500
Pastry Items 2,000 3,000 6,000 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 7,000 10,500 16,000 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833
Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Espresso Drinks $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Pastry Items $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales
Espresso Drinks $15,000 $22,500 $30,000 $37,500 $37,500 $37,500 $37,500 $37,500 $37,500 $37,500 $37,500 $37,500
Pastry Items $2,000 $3,000 $6,000 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $17,000 $25,500 $36,000 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833
Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Espresso Drinks $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25
Pastry Items $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Espresso Drinks $1,250 $1,875 $2,500 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125 $3,125
Pastry Items $1,000 $1,500 $3,000 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $2,250 $3,375 $5,500 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292
Table 6.1 Personnel
Personnel Plan
Personnel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Managers $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333
Baristas $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Payroll $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333
Total Headcount 8 8 8 8 8 8 8 8 8 8 8 8
Payroll Burden $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750
Total Payroll Expenditures $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083 $21,083
Table 7.2 Profit and Loss
Profit and Loss (Income Statement)

Sales $17,000 $25,500 $36,000 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833 $45,833
Direct Cost of Sales $2,250 $3,375 $5,500 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $2,250 $3,375 $5,500 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292 $7,292
Gross Margin $14,750 $22,125 $30,500 $38,542 $38,542 $38,542 $38,542 $38,542 $38,542 $38,542 $38,542 $38,542
Gross Margin % 86.76% 86.76% 84.72% 84.09% 84.09% 84.09% 84.09% 84.09% 84.09% 84.09% 84.09% 84.09%
Operating expenses:
Advertising/Promotion $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Expense $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333 $18,333
Payroll Burden $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750
Depreciation $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Other $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433 $28,433
Profit Before Interest and Taxes ($13,683) ($6,308) $2,067 $10,108 $10,108 $10,108 $10,108 $10,108 $10,108 $10,108 $10,108 $10,108
Interest Expense Short-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense Long-term $829 $825 $821 $817 $813 $808 $804 $800 $795 $791 $787 $782
Taxes Incurred ($3,628) ($1,783) $311 $2,323 $2,324 $2,325 $2,326 $2,327 $2,328 $2,329 $2,330 $2,332
Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($10,884) ($5,350) $934 $6,969 $6,972 $6,975 $6,978 $6,981 $6,985 $6,988 $6,991 $6,995
Net Profit/Sales -64.03% -20.98% 2.60% 15.20% 15.21% 15.22% 15.23% 15.23% 15.24% 15.25% 15.25% 15.26%
Table 7.3 Cash Flow
Pro-Forma Cash Flow

Net Profit ($10,884) ($5,350) $934 $6,969 $6,972 $6,975 $6,978 $6,981 $6,985 $6,988 $6,991 $6,995
Plus:
Depreciation $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Change in Accounts Payable $600 $2,580 $3,668 $3,305 ($3) ($3) ($3) ($3) ($3) ($3) ($3) ($3)
Current Borrowing (repayment) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase (decrease) Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Borrowing (repayment) ($488) ($492) ($496) ($500) ($505) ($509) ($513) ($517) ($522) ($526) ($530) ($535)
Capital Input $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal ($5,772) $1,738 $9,105 $14,773 $11,464 $11,463 $11,462 $11,461 $11,460 $11,459 $11,458 $11,457
Less: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Change in Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital Expenditure $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash Flow ($5,772) $1,738 $9,105 $14,773 $11,464 $11,463 $11,462 $11,461 $11,460 $11,459 $11,458 $11,457
Cash Balance $64,228 $65,965 $75,071 $89,844 $101,309 $112,772 $124,234 $135,695 $147,155 $158,614 $170,072 $181,529
Table 7.4 Balance Sheet
Pro-forma Balance Sheet
Assets
Short-term Assets Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash $64,228 $65,965 $75,071 $89,844 $101,309 $112,772 $124,234 $135,695 $147,155 $158,614 $170,072 $181,529
Other Short-term Assets $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Total Short-term Assets $76,228 $77,965 $87,071 $101,844 $113,309 $124,772 $136,234 $147,695 $159,155 $170,614 $182,072 $193,529
Long-term Assets
Capital Assets $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Accumulated Depreciation $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000
Total Long-term Assets $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000
Total Assets $136,228 $132,965 $137,071 $146,844 $153,309 $159,772 $166,234 $172,695 $179,155 $185,614 $192,072 $198,529
Liabilities and Capital

Accounts Payable $1,600 $4,180 $7,848 $11,153 $11,150 $11,148 $11,145 $11,142 $11,139 $11,136 $11,133 $11,131
Short-term Notes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Short-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Short-term Liabilities $1,600 $4,180 $7,848 $11,153 $11,150 $11,148 $11,145 $11,142 $11,139 $11,136 $11,133 $11,131
Long-term Liabilities $99,512 $99,020 $98,523 $98,023 $97,518 $97,009 $96,496 $95,979 $95,457 $94,931 $94,401 $93,866
Total Liabilities $101,112 $103,200 $106,371 $109,176 $108,669 $108,157 $107,641 $107,121 $106,596 $106,067 $105,534 $104,996
Paid in Capital $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000
Retained Earnings ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000) ($64,000)
Earnings ($10,884) ($16,235) ($15,300) ($8,332) ($1,360) $5,615 $12,593 $19,575 $26,559 $33,547 $40,538 $47,533
Total Capital $35,116 $29,765 $30,700 $37,668 $44,640 $51,615 $58,593 $65,575 $72,559 $79,547 $86,538 $93,533
Total Liabilities and Capital $136,228 $132,965 $137,071 $146,844 $153,309 $159,772 $166,234 $172,695 $179,155 $185,614 $192,072 $198,529
Net Worth $35,116 $29,765 $30,700 $37,668 $44,640 $51,615 $58,593 $65,575 $72,559 $79,547 $86,538 $93,533

Dessert Bakery Business Plan

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Dessert Bakery Business Plan

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Jolly's Java and Bakery

Copyright Palo Alto Software, Inc., 2001

The undersigned reader acknowledges that the information provided by

It is acknowledged by reader that information to be furnished in this business

Upon request, this document is to be immediately returned to

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3.0 Product/Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4.0 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

5.0 Strategy and Implementation . . . . . . . . . . . . . . . . . . . . . . . . . 7

6.0 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.0 Executive Summary

1.2 Keys To Success

Keys to success for JJB will include:

1. Providing the highest quality product with personal customer service.

2.0 Company Summary

2.1 Company ownership

2.2 Company History

Table 2.2: Start-up

Start-up Assets Needed

Long-term Assets $65,000

Total Start-up Requirements: $211,000

Start-up Funding Plan

Loss at Start-up ($64,000)

3.0 Product/Service Description

4.0 Market Analysis

4.1 Market Segmentation

4.1.1 Market Analysis

Market Analysis (Pie)

Table 4.1.1: Market Analysis

4.2 Target Market Segment Strategy

4.2.1 Market Needs

4.3 Service Business Analysis

4.3.1 Competition and Buying Patterns

5.0 Strategy and Implementation

5.1 Competitive Edge

5.2 Marketing Strategy

$400,000 Espresso Drinks

Table 5.2: Sales Forecast

Unit Prices 2001 2002 2003

Direct Unit Costs 2001 2002 2003

Direct Cost of Sales 2001 2002 2003

6.0 Management Team

6.1 Personnel Plan

Table 6.1: Personnel

7.0 Financial Plan

7.1 Break-even Analysis

Monthly break-even point

Break-even point = where line intersects with 0

Table 7.1: Break-even Analysis

7.2 Projected Profit and Loss

Table 7.2: Profit and Loss

Profit and Loss (Income Statement)

7.3 Projected Cash Flow

$50,000 Cash Balance

Table 7.3: Cash Flow

Pro-Forma Cash Flow

7.4 Balance Sheet

The following is a projected Balance Sheet for JJB.

Table 7.4: Balance Sheet

Pro-forma Balance Sheet

Liabilities and Capital